Niger Insurance announces N11.1b premium

NIGER Insurance Plc achieved a gross premium written income of N11.06 billion in 2014 as against N10.44 billion recorded in 2013, representing a growth of 5.95 percent.

The company’s Chairman, Bala Zakariya’u, who disclosed this during the 45th yearly general meeting held in Sokoto, said the group profit after tax rose to N690.96 million in 2014 from N627.42 million in 2013 in spite of the challenges in the operating environment.

The management’s ability to cut costs also helped to increase the profit as management expenses reduced by 29.27 percent from N4.68 billion in 2013 to N3.31 billion in 2014.

He also informed shareholders that net premium income of the underwriting outfit increased by about 1.45 per cent to N9.79 billion in 2014 from N9.65 billion in 2013.

Niger Insurance is increasing equity in the business and also improving on its insurance fund as investment income grew by 46 per cent to N1.15 billion in 2014 from N790.54 million in 2013.

Zakariya’u explained that the growth in investment income was due to strict implementation of NAICOM directives on “No Premium No Cover Policy” from January 1, 2013.

The policy aims to stimulate liquidity within the system by reducing the huge receivables being carried on the statement of financial position of insurance companies. A dividend payment of 3.5 kobo per 50 kobo share amounting to N270.88 million was approved by the shareholders at the yearly meeting.

He added that Niger Insurance has been intensifying payment of claims to clients as its claims ratio increased to 37.88 percent in 2014 from 35.72 per cent in 2013. Claims expenses in 2014 was N4.19 billion, representing an increase of 12.33 percent compared to N3.72 billion recorded in 2013.

On the future outlook, he said the company is determined to give more attention to the retail segment of the industry which is less volatile and diversify its investments portfolio, review and revamp product offerings.

He further assured that the organisation would hasten formation of new local and international alliances to further consolidate its position in the industry.